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Level 1 factors are highly strategic in nature. Only after a city satisfies the Level 1 constraints, can it be considered for the second stage where it is compared with the other cities based on the Level 2 factors.

Analysis and Recommendations for Level 1 Factors

With the growing demand, a lot of companies are opening up add-on centers. Many new companies-both Indian and overseas-are also setting up their facilities. The choice of locating a facility should be entirely different in both the cases.

As suggested by Dataquest each company should have the first center in one of the business decision-making centers. We have just three major and one minor business decision-making center in India for the new economy businesses. Delhi, Mumbai, and Banaglore are the undisputed business influencers, while Chennai is emerging as the fourth such location. Hyderabad is trying but is yet to get into that league, despite all efforts by the Andhra Pradesh government. A company that is setting up in India for the first time would well be advised to start from one of these locations. Pune may be an extremely good location for setting up a facility but is a little isolated from the business mainstream and hence would make running the business a little difficult. It becomes even more difficult for a place like Kolkata or Kochi.

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* Contributed by -
Ankur Pawa & Nishant Choudhary,
Indian Institute of Management,
Lucknow.